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China’s inflation up 1.4 pct in 2015

Inflation in China was up 1.6 percent from a year earlier in December, bringing the reading for the whole year of 2015 to a six-year low, official data showed.

The National Bureau of Statistics of China announced on Friday the consumer price index in the world’s second largest economy rose 1.4 percent year-on-year in full-2015. It was below the target of 3 percent set by the Central Government for last year.

The bureau said in a statement accompanying the results that the December increase was mainly due to rising food prices including vegetables and fruits.

Meanwhile, the bureau also announced China’s producer price index – a measure of cost for goods at the factory gate – dropped 5.9 percent year-on-year in December, extending the decline to 46th straight months. The full year reading for 2015 fell 5.2 percent from a year earlier, the bureau added.

China’s central bank said in a working paper last month that the country’s consumer price index is likely to climb 1.7 percent in 2016 while the producer price index is expected to fall 1.8 percent.